Back when he was running a shadow campaign for Governor starting in 2007 with his “Recharge Ohio” PAC, Governor-elect Kasich talked about two things: 1) Repealing Ohio’s income tax; 2) Repealing Ohio’s estate tax.  Here’s what Kasich said in March 2009 on the estate tax (before officially running for Governor):

Here’s what Governor-elect Kasich said about the estate tax during the general election: [cue crickets]

And here’s why.  A conservative group tried to get a state estate tax repeal as an initiative this year to help turnout the vote for Kasich.  They couldn’t even get enough signatures to get an estate tax repeal in front of the legislature and then the voters.  According to the Columbus Dispatch (Sept. 10, 2009) at the time, now outgoing Senate President Bill Harris announced such a repeal DOA in his chamber:

The Ashland Republican said he’s willing to listen to supporters, but that he wants more information about what the bill does. When told it simply eliminates the tax, Harris said, “If it was that simple, it would have been done a long time ago.”

Previous efforts to limit or kill Ohio’s estate tax have failed, in large part because 80 percent of the revenue goes to local communities. Of the $317 million in estate taxes collected in the 2008 fiscal year, the most-recent data available, the state received $61.4 million and $256 million went to local governments, according to the Ohio Department of Taxation.

Well, guess what the conservative group believes John Kasich is going to do?According to today’s Columbus Dispatch:

A group seeking to repeal Ohio’s estate tax says it will fail to meet the deadline for a second year to file enough signatures to have the legislature consider the plan, but it isn’t discouraged.

That’s because the group hopes the incoming Republican majority in the Ohio House and Republican Gov.-elect John Kasich will take action on their own.

"We’re very encouraged by what we’re hearing," said Jack Boyle of Citizens United to End Ohio’s Estate Tax.

Although he has offered no timetable, Kasich has vowed to end the estate tax, and House Republicans also are expected to take up the issue.

So at the same time John Kasich is making public unions for being responsible for cities having trouble balancing their budgets, Kasich is plotting with economic extremists in his party and the legislature to pass something that will cost Ohio’s cities over a quarter of a billion dollars a year.

Mind you, this is an idea that is so popular, that a group organized to get this on the ballot has already failed twice to do so.  They can’t even get people to sign a petition to put it in front of the legislature or the voting public.  And that’s all this group was formed to do.

And don’t tell me for a moment that Kasich has a plan to replace that revenue with state funding in the midst of this budget cycle, if anything I would be surprised to see the State Local Government Fund terminated as well.

Evangelize!
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  • Anastasjoy

    Republicans in wealthy communities like Pepper Pike really, really, REALLY hate this idea. It means that if they want to continue to have the high level of services they demand, they will have to drastically increase their property and income taxes. Kasich can’t seem to stop looking for ways to destroy the state economically.

  • http://writeslikeshetalks.com Jillmz

    Well – being that particular community ;) at least this council member has been urging her colleagues, her mayor and her finance director to zero out estate taxes for all budgets here forward. They actually get it, but believe it or not, one of the residents who was extremely against the income tax hike issue this summer wanted us to budget $1.4 million per year – yes – you read that right – in regard to estate tax revenue based on the average over the last 15 years. Not.gonna.happen.

    As I say, I’m trying to get us to lower it to zero – what we turn into the state is actually an appropriations budget, not a revenue document so you have to be careful – you can’t just imagine that you might get that kind of money in (our whole budget is only about $10 million) and put in expected appropriations for it.

    One thing I’d modify in your comment tho Anastasia – it’s not so much that the community’s members have wealth or high earnings, it’s where they die. If you have wealthy people who are not domiciled in Ohio – and we have a disproportionate number of them – we don’t get the estate tax. Similarly, if a community just doesn’t have an older population but has say more dual income highly employed folks, the city’s estate tax revenue is very likely negligible.

  • Delco

    Soo- it seems that Kasich subscribes to the jelly donut theory of economics. Squeeze the state income tax, CAT, and estate tax, and squirt the big blob of raspberry jelly onto the laps of citizens within local jurisdictions and school boards- who will be stuck with the dry cleaning bill.

  • LibrJim

    My wife and I have already discussed this. When we retire we are voting with our feet and leaving Ohio to avoid the Estate tax. It’s not like we hate the state or the people in it. “Progressive Taxation” and Unions have simply made it too easy to steal the wealth we have accumulated so Bye-Bye.

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  • Scardog007

    repealing the estate tax WONT hurt schools as delco claims above. schools get their tax money from property taxes. don’t ya think those with estates to leave have already paid enough in taxes while alive? they tax ya when you earn it, tax ya when you spend it, tax you when you save it and tax ya when you leave it behind.

  • Anonymous

    Again, why should people be allowed a huge tax-free windfall for simply winning the inheritence lottery when any other windfall is taxed as income? The estate tax, even at it’s low exemption level, is still a lower tax in almost all cases as the income tax.

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